profits. and things that ebay had changed. good morning. it is "bloomberg surveillance." we're live. i am tom keene. it is a busy day. nelson mandela is front and center. data.ot of economic today is job stay. the moment is 8:30 a.m.. theine: 55, we get university of michigan confidence. also, we have american eagle outfitters out before the bell. alan greenspan will speak. he called it a bubble. bitcoin made aon splash. next year'sraw for

soccer world cup will take place in brazil. it will determine the competition at the tournament. this is a big deal. >> that is more foreign than the jobs report, actually. >> state tuned. current, commodities, stocks, bonds -- we're nearing 1800 and the futures. yields go out. the dollar is stronger, con founding germany. they won a weaker euro and they do not get it. -- this is aond big deal. underer chinese currency, is at australian dollar .91.

we scoured the papers. so much is going on this morning. all of it is centered on the passing of nelson mandela. >> he is the front page story. today is job stay. the results of the survey say that payrolls have increased in the month of november. >> the feeling is like this? >> it will probably declined to a low. the assessments have been upgraded. and financial capital rights this warning that bond investors are ratcheting up their payroll expectations above 200,000. the investor feeling within the bond market is -- >> you see this in yields. it gets to ambiguity. ron burgundy would have gotten that. the ambiguity is important. the yields are higher. >> the bond market has reacted

more quickly. we also got gdp yesterday and that was revised a lot higher. a lot of people are cutting their fourth quarter estimates. >> sales were pretty light. >> finally, the passing of nelson mandela. widely expected, but there it is, the moment. >> i particularly liked the cover of the new york times. a beautiful shot. >> they released his wonderful obituary last night. was 10 or 11t screens. it was outstanding. early to appear on some front pages, but there was an interesting insight. they examined him as a humanitarian and a politician. that is something we do not necessarily hear a lot about. >> and there are mourners in south africa as we speak.

that is a live shot. >> there is eight or nine hours difference there. into the afternoon. still a deeply divided south africa. richard haass will join us in the next half-hour. then we will bring in maxine hot -- maxine waters. she will have her perspective. back, the tension was tangible around sanctions. >> there is an example of sanctions at work. it changed the game for south africa. it changed the way that consumers felt like artists paid and political issues. page this our front morning. still a polarized south africa. at racial issues are front and center. foring us is our editor sub-saharan africa -- the former

ambassador of the united dates nigeria are right on the continued divide in south africa. what is the distinction between white and black south africa membrane nelson mandela this day? -- remembering nelson mandela this day? >> i do not think there is a strong distinction. their coming together. his death has brought people of all colors and races and classes together again. it is a united nation today. people are mournful, but they're celebrating his life. they are gathering at his house in northern johannesburg, where people are paying tribute and releasing doves. they are laying flowers and whatever they feel fit to honor him. >> tell us about the remembrances. primarily, it is a

johannesburg event. this is the biggest city in south africa. it is where the he spent the bulk of his adult life. they are announcing what they plan to do now. quite a lot will happen on the island where he was imprisoned. most of the events will take place in johannesburg. there are press conference is being called this afternoon. they will be 1:00 london time. in cape town, desmond tutu will be speaking about now. >> we will look forward to that. i'm curious, he retreated from public life for many years. what is the ceiling of the lack of moral void now in south africa? that, -- i think that

he has been out of the public for many years. he has not been seen since the 2010 world cup. nevertheless, he is a big figure. they appear to have lost their way. there are a lot of scandals. they're losing support among both lack and white south africans. there is a void and i think that this will be emphasized by his passing. >> thank you. morning andst this for the entire bloomberg surveillance is our political analyst. so much of this was predicted. i think there has been some really lovely remembrances of nelson mandela. people knew this was coming. it has been most interesting to look back to the tension. >> the thing about him is that he is a hero to so many people.

so many people had never met him or been to that town. his story is an amazing story. it is the journey of a human being from a very flawed individual. he was not perfect, he was not a saint. he went into prison angry -- >> at age 44. >> and came out accepting. i wrote about this a little bit -- the bull of what he accomplished happened after he was 72, when he got out of prison. the bulk of his accomplishments happened after most people retire. >> here are his remembrances. he did this for abc last night. he was not a perfect man. he made his own mistakes. that made him a more compassionate leader, a leader who approached his country less judgmental he. he grew up essentially in royalty africa.

he had an attitude. historyed africana in -- in prison. -- one of the famous things, the poll him that he had ctus." cell wall, "invi he became a real human being after 28 years in prison. he actually considered, in the end, prison was a gift. will join usass and maxine waters will join us in the next hour. >> let's get to some company news. starting with time warner cable, the new ceo is ready to sell if the price is right. in mergers has given him the experience to know a good deal when he sees one. their rivals have considered making bids.

nissan is bouncing back in china. sales of the country should be stronger than gains for the first time in three years. they were among the hardest hit japanese companies last year when a territorial dispute over islands led to a boycott of some japanese products. and los angeles goes after citigroup and wells fargo. they are accusing them of discriminatory lending. loans thatssuing could not be afforded. that is today's company news. >> a lot more to talk about this morning. jobs day, of course. the market reactions throughout the morning. please stay tuned. our continued coverage of the death, the passing of nelson mandela at age 95. nelson mandela remembered around

the world. ♪ lost one of the most influential, courageous, and profoundly good human beings haveany of us will ever seen on this earth. he no longer belongs to us. he belongs to the ages. ♪

>> good morning everyone. 9:00 hour.in the of coarse, they will talk about nelson mandela. check that out on "in the loop." i am tom keene. alix steel and scarlet fu are with me. today, bloomberg television is focused on ebay. west" will give us perspective on ebay. they will give us the first word. >> we will go inside ebay. when you look at them, you compare it to amazon. what is interesting is that they both benefited from the shift to online commerce. they have both done very well.

they are projected to grow as much as 15%. that is three times as fast as the overall total. stock prices tell us a different story. amazon set a record high. ebay reached a 52-week low. both have corrected. >> it is short-term fu. bring up the long-term charts. >> the one-year chart. >> let's bring up an elegant chart grid you are showing the train wreck that is ebay. they going nowhere compared to amazon. >> it actually stumbled before black friday. the forecast missed analyst estimates. they were up 12%. >> it is only $14 billion last year. let's not forget that. >> why is the stock going nowhere? >> is in a large part of their business also paypal and stub hub?

lower margins. >> and the fact that they are seen and as a much owned retail company that benefits from seasonal events. also on the enterprise side. think about web services. that is something they do not have. >> the last time that matt dowd was on ebay, he was looking for -- >> i bought a london taxi. an entire taxi on ebay. >> how many other bidders? >> none. i got it for $4000. i gave it to a charity who auctioned it off. >> why did you go to ebay for that? was there free shipping? >> no, there was not free shipping. >> that is a big distinction as well. free shipping is the holy grail

in e-commerce. amazon has free shipping. >> ebay does not? >> the person who sold him the car is going to charge him $600, even if it cost him $200. never go to ebay, it scares me. >> help us here. what are they doing? >> there are no initiatives there. they are looking at same-day shipping. it is to deliver something for a flat fee of five dollars. >> have you tried to navigate their website? it is tough. they have not improved the navigation in five years. >> are we too old? i was just saying that there are some production assistance in their 20s who have no problem using ebay. >> we need to rip up the script. lance and has filed for a spinoff from sears. we know that there has been a

lot of rumors. they had to sell their holdings. end has filedands' for a spinoff. lands've gone as much to end as i have gone to ebay. it is innovation on surveillance. he buys a taxi, we will have in ebay drone ship it. up, the president and ceo of ebay will be joining bloomberg on "bloomberg west." that is at 1:00 eastern time. we will stick with ebay for the twitter question of the day. what is your ebay strategy? do you sell things, do you buy it now? tweet us.

we will be right back with more. ♪

>> good morning. i am tom keene. we have the top job stay headlines. >> we will start in south africa. mourners have gathered outside of nelson mandela's home to pay their respects. he passed away yesterday at his home in johannesburg. they broke the news and told the country that they have lost their greatest son. he was 95. the japanese prime minister is calling for a summit with the chinese president. in an interview, he said that given the recent issues between

the two countries, it is important to have a leaders meeting. because there are issues, i think there is a need to have a meeting by the heads of state. i always keep my door open for a dialogue and i hope china will adopt the same stance. that is my hope. >> the call for a summit comes as tensions remain high over china's recent creation of an air defense zone. and companies are spending a bit more for holiday parties this year. get ready to drink out. party budgets have grown slightly over last year. spending has been slowly rising after employers cut back during the recession. those are your top headlines. >> i'm having coconut water this year only. >> why is that? >> i am staying healthy. >> i thought i saw you having with the onset. so, our morning must read.

more on the life of nelson mandela. i have a chart and i want to talk to matt dowd. the red circle was the intention of america when sanctions began. you can see the decline in real economic growth. the blue vertical line was the presidency of nelson mandela in 1994. you and i remember this. .onald reagan said no congress pushed it back to him. president bush senior went along with congress as he came into office. >> most people forgot the ronald reagan vetoed the sanctions. that was one of the main pressure points and changing what happened. it is, i think that he in the end came along and saw -- but he stood in line. >> you cannot even describe the tension and america on campuses about divestment.

it was tangible. >> you go back to that time and there was not a consistent view of nelson mandela. there was not a universal sense that this was a great man. there is a very big conflict. >> it brings up the question of what his legacy is. what countries can also learn about how he handled negotiations. he is writing on linkedin about what comfort -- what countries can learn. not only for developing countries, navigating complex transitions, but also for advanced countries. i thought that was really interesting. is -- heher thing highlights how small our politics are in this country. here is this man in south africa and what he did. it highlights how small our politics are. >> in the coming days, the

introspection -- he is almost old news to modern south africa. >> they are struggling. they will have to struggle through a vacuum. they are not out of the woods. they remember him today, but they have a leadership vacuum coming. >> bloomberg.com will have many perspectives. >> coming up, we will discuss how housing is booming. a lot of discussion about where the job growth is. we will talk about the disconnect. ♪

>> it is washington in the early morning light. december 6. politicians and the citizens of the district of columbia are remembering nelson mandela.

richard haass will join us in the next hour. maxine waters as well. futures are advancing. there is a risk -- yields are up nicely. the euro dollar agrees. it would be big news by the end of the year. oil is up as well. let's go to gainers and losers. >> we cannot get away from the fact that is retail holiday shopping. it was a good season for dollar general. they are being opportunistic with buybacks as well. positive news out of dollar general. jcpenney is down almost nine percent. managers said that that does not help. people wonder if they can maintain momentum after the discounting is done. sincee prices are up 175%

2009. mortgage debt levels are rising. the only thing missing is more jobs. >> and we have cautions that this may create a slow-motion replay of the housing train wreck. we have to get out ahead of it. michelle meyer joins us. she nailed the housing rebound. we dragged her in here to tell us where we go from here. i year-and-a-half, you were all over this. now what? >> i think this will mark the strongest year for many years. this year. we're on track for just over 10%. that is not the new normal. we will see moderation from here on. prices are affected by exceptional factors. those are now coming down.

distressed properties were very attractive to investors that bought. an extremely low inventory. the market needs to normalize again. >> this dovetails into the cautious call on growth. looking at the fourth quarter, you nailed it. are you more optimistic for 2014? >> we can finally say yes. we are a bit more optimistic. still cautious, but looking for a better year in terms of growth. think about the dynamics. considerable fiscal constraints. we're going to see environment -- it will allow for the underlying economy to look stronger. >> the bloomberg political analyst is with us -- sequestration in 2014 is different for him last year. >> they realize -- both sides realize they made a huge mistake. interesting point to me, we

had a stock market high. we have housing rates out. we have more millionaires and billionaires. you have all of this data and then you have 75% of the country saying we are on the wrong track. >> will that look like going forward when you deal with the restructuring of fannie and freddie? will we see tightening standards and will that hurt the economy even more? >> i think that is one of the challenges. there are lasting scars. we will continue to see regulatory changes and adjustments. one of those is in the mortgage market. >> can i get a mortgage in 2014? doesn't change the radically that i cannot the mortgage? >> we could see some listening, but when we look back, it will look fundamentally different than what we had during the bubble. >> let's look at today's jobs

report. there is angst across the nations. to me, it is labor. is there any chance of paychecks rising? >> so far, it has been sluggish. there is a lot of underutilization of labor. it will take time before you start to see wage pressure builds. we are making progress. firing is down. we are starting to see a pickup in hiring. >> there is a brewing of frustration in the country. for a generation, they have basically see no increase. now, they do not trust our economic institutions. the do not trust our governmental institutions. they have got no fix. >> we are looking at the top one percent for housing in the top one percent for wage earners.

this is undoubtedly the case. >> there's a lot of frustration of low income growth and market conditions. yet, we have created wealth. where has that been created? it is the stock market. >> i want to bring us to washington. does this distill down to a republican senate? you take the economic analysis, and does it lead to the angst that you're talking about? >> the problem is, the country will take it out on both sides. you will see some republican senators when. i still think that the odds are that the democrats will keep the senate. the republicans will keep the house by a bear margin. neither party is benefiting. once weto the economy, start tapering, does that balance itself out? >> i think so. that is the return to what will

be a more normal economy. but, it will be a difficult process. i do not think anyone can argue that tapering will be easier. an, we will return to environment of high rates eventually. we will return to an environment where the economy is lower. >> this the income gap start narrowing then? >> presumably. >> what does your economic team learned from the bond prices of july and august? that was ugly. what did you learn from that? >> i think that the communication is going to be absolutely critical and very difficult. teasing janet yellen will be different? >> yes. i do not think she will be all that different. she headed up the communications committee.

i think we will continue to see effort to make it obvious to the markets what the mandate is and what they're trying to do. ultimately, it will be difficult because this is unprecedented. >> the jobs report will come out at 8:30 this morning. what is the first thing you look for? >> headline jobs first, then revisions, then the unemployment rate. finally, what drives the and and limit rate? >> are wages going up? that is all i want to know. >> that is coming up at 8:30. also, we are going into ebay. the ceo will be joining us later on today at 1:00. ebay is our twitter question of the day. what is your ebay strategy? are you a seller or a buyer. do you wait until the last minute to make your purchase? tweet us. ♪

>> futures are up seven. he is on the set. join us for an exclusive. we just learned that michelle

out for maternity leave, did not watch "bloomberg surveillance." >> there was plenty of time to watch tv. you are impressive. you handled it very well. >> breast-cancer awareness month. >> save us with top headlines. >> we will start in germany. orders slid 2.2%. economists predicted a slip of one percent. that follows a three percent jump in september. they point to an uneven recovery in europe's largest economy. officials in shanghai are taking emergency measures after pollution reaches a hazardous bubble. government vehicles have been ordered off the road. they have also required companies to stop production. and a powerful northeast storm is sweeping through parts of

germany. the port of homberg was shut down. london also closed the gates for the river thames as the storm passed through the british isles. many are without power. >> i spoke to one of my offspring and shanghai. he said it is really bad. he has a mask on in his apartment. i said, what do you need? filters? he said it is serious. it is like beijing. that was his exact words. >> it looks like desk, no matter what time of day. >> it is time for our single best chart. >> it is jobs day. how about in the context of workers? our best chart measures real profits per worker. cost cuts and increased

efficiency -- it is at a record high. you can see the straight leg up over the last three quarters. this is an efficiency metric that tends to peak well before recession. it shows no signs of rolling over. it can exist in this backdrop. --the top-flight economists matt dowd, this is something that the republicans and democrats have to deal with. >> it is another example of what is going on with the small group of people in this country. ford, whoother henry came along and said that we have to pay people enough to buy the products that we make. >> the disruption that we have points in the other direction. there are fewer workers employed. >> fewer workers supporting retirement. we're going to talk about

pope francis here in a bit. matt dowd, from where you sit, this trickle-down economics work? >> it works in a very small amount. when you have wealth at the top, it does trickle down. wheree a generation now we have not improved the financial situation. we have fallen when you factor in inflation. the younger voters do not think they will be better off. >> michelle meyer is joining us from bank of america. what is the long-term ramifications if wages do not grow? changesrtainly consumption behavior. it changes the overall dynamics in the economy. you have several years of slow growth. consumers are going to feel differently about their willingness to take on debt.

they will feel differently about their willingness to save. >> i spoke last night to jeffrey at general electric. he minced no words about it. he simply said that there is a huge difference between two percent gdp and 3.5% gdp. do you agree with that? would that solve america's problems? >> it will go a long way. 3.5% gdp is a much stronger economy than two percent. we estimate growth to be about 2.25%. you need that to keep this trend. this is coming off of a very weak recession. we have a big output cap. things are above trend. we need to close that gap and normalize the challenges. >> thank you so much. we will continue with matt dowd. images of the passing of nelson mandela. it has to include desmond tutu.

the religious experience in south africa is so complicated by the 17th century dutch. here is desmond tutu and his thoughts on nelson mandela. i made a mistake this morning and said i am sorry. -- who could ever forget -- ♪

>> this is "bloomberg surveillance." i am scarlet fu. let's get you some company news now. optimism for bitcoin. they say that the virtual currency has clear potential for growth and could become a significant tool for e-commerce transactions. analysts say that it should have a market value under 1000. spotify will plan a free mobile service. it will be available for mobile devices in the u.s. and other countries. they hope that the service will convert more users into paid subscribers. and at&t is unleashing a new

device cost. phone can have a plan for its low as $45 per month. the old plan was $70. that is today's company news. >> my to do list for the beginning of the year is to add up the aggregate cell phone bill. >> everyone got a new iphone. >> isn't that why t-mobile did so well? pay-as-you-go? >> you think? out of control. >> let's switch topics. pope francis makes headlines wherever he goes. he is challenging the global economic system. he slammed trickle-down economics. tim is joining us. you interviewed the pope not long ago. there is a lot of criticism that his language seems hostile to free markets.

is he? >> he is very blunt. more so than his present -- predecessors. what he had to say was not that different. >> let's get a microphone on tim. we will work on that. matt dowd is with us. it has been a different pope hasn't it? >> the symbolic actions that he is done in conjunction with what he said. he has totally flipped the view of the vatican. in very few months from symbolic action. >> the move from benedicta to francis has been abrupt. -- how he wears conducts himself. there is much more power in his words. that is why they come across more forcefully. >> he seems like a celebrity pope. wherever he goes, people may pay more attention to him. he is looking to transform the church. >> his style is very appealing.

he has a very challenging message. people are listening. he does not seem to be alienating people. it is really remarkable. >> you make the distinction of personal charity. what do you mean by that? >> what is the role and how do we help the poor? in the 18th century or 19th century, new york was the heart of the matter. >> in the city, there were a lot of poor. he calls us to pay attention to the poor of this generation. he is calling on the economic systems to pay attention to people who are left behind. >> do you see that occurring? >> i think that he is pushing us to that. people are talking about pope francis in a way that people have not talked about these teachings for a while. >> he has upset a lot of conservatives who had said that they liked this pope.

now he comes along and is talking about social justice and economic mobility. conservative catholics are shocked. he is talking about what the church was founded on. >> what does that mean for politics in the u.s.? you might have some conservative catholics running for president? >> if you want a sweet spot for somebody running for president in 2016, you would take on washington and wall street simultaneously. both parties are captive. republicans are not able to take on wall street. you would take some of the worst of what he is saying and fashion that and take on oath institutions. >> you said in your work at princeton -- we just celebrated the anniversary of the assassination of the president. there has been a shift.

with the assimilation of caplets in this country, they reflect the general electoral outlook. we are moving in that direction. >> michelle meyer from bank of america is one person -- one person who has had an impact. whatus a little bit about is so appealing about the message to the pope? >> i think it is about being able to provide for everyone. it is about being able to offer opportunities to everyone. that is what they're getting at. this is a challenging economy, across the globe. not just in the u.s. i think it is going to take a lot of policy changes and the pope clearly has a view on that. he is weighing in on that. >> tell us about his personal background. he was the archbishop of wayne

us areas. the economy there collapsed. that plays into capitalism. >> when he was elected, many people did not know who he was. we are still learning about him and his time. also, his interactions with the poor. he is someone who is always reached out. >> the phrase that i use is ripped up the script. we just saw images of desmond tutu. the anglican experience against the africana experience in south africa. with in the religion of south africa, there has been so much to mull. -- tumult. catholic, what do you see for south africa as they try to move forward? this is a huge issue. >> nelson mandela was a huge, unifying figure. even in the last years of his life, he still helped people together. what will happen among these

groups in the coming days and years will be critical. >> when you see south africa, do you perceive that religion still is front and center? i believe that he was in a methodist school coming out of the tribes way back. his religion still important there? >> i think that the anglican church still has a presence there. it can definitely play a role. >> part of the problem that they with his is within -- retreat from public life. politics has become much more better. much like america. much more tension and conflict. >> matt dowd is with us. michelle meyer, thank you for being with us. thank u so much for coming by on this historic day. let's do a forex report. we went conventional. markets are really moving. the euro is up.

much more on "bloomberg surveillance." ♪ .. ..

>> he defeated the apartheid state. nelson mandela is dead at 95. a worldwide america -- a remembrance. there is an american boom in profits but not in american wages. turns up.dy everyone, bloomberg surveillance live from our bloomberg headquarters. keene, joining mia scarlet fu and alix steel. our guest is matt dowd. >> he doesn't have the hair or the mustache. >> i do have a dodge jeep, though. >> adam johnson can do a good ron burgundy imitation just by being himself. it is now time for our morning reef this job stay.

>> it is job stay. atwill get the jobs number --0 a.m. eastern a reader eastern. we also have earnings coming out, american eagle earnings before the bell and alan greenspan speaks at 4 p.m. eastern in philadelphia. and the draw for the next year's world cup takes place in brazil. it is a big deal in the rest of the world. for that. looking >> scarlet fu with a job stay company news. >> a new ceo is ready to sell the price is right at time warner cable. his background and mergers has given him the experience to know a good deal when he sees one. comcast and charter have considered making bids. this is according to people familiar with the matter. nissan is belting back in china. sales should be stronger than

industrywide gains for the first time in three years. the sun was one of the hardest hit japanese committees in china when a territorial dispute over islands led to a boycott of some japanese market -- cap these products. and for ke$ha that employers added 185,000 jobs in the month of november. that would keep a gains on track for the best year since 2000 eyes. that report is due out 8:30 a.m. eastern time today. the unemployment rate is expected to take lower. -- il that data that sarah have done terrific work on this sluggish american economy. will our job market be better >> -- -- be better yet go be better? >> there may be some upside risk.

>> three months moving average, how do we make matt dowd and washington happy if so much of america is miserable? we have to get over 200 thousand. >> they were 200,000 for a long time. we lost a considerable amount of jobs. we are not even at the >> theis level of jobs. participation rate in actual number of people working, it is down an all-time low. >> exactly. we have made a little blip higher. >> does that mean -- i understand you do not advocate public policy. but what is the value of stimulus right now? it's -- saysan say do something, what is the urgency as we go into next year? >> the urgency is that this is just one more year that is coming to an end in this slow growth recovery that has been painful for a lot of people.

whatever we do to help stimulate jobs? i think if that is obviously doing whatever is in their capacity and they are keeping costs low, helping creation with the hopes that it inflates well and create consumer spending. that supports business creation and job growth. it is a slow process and there have been a lot of challenges, undoubtedly. onof course, the pressure is for the fiscal side to come up with solutions, not just the monetary side. is there any movement on the fiscal side that will be closer to -- >> there will be band-aids. not going to are get out of this political mess until after 2016. he are now in a situation where the president is entrusted by the majority -- isn't trusted by the majority of americans. to get anything done in any meaningful way is going to wait until the next president and >> how much work can we didn't tweet 14 if we cannot

curb the tide of sequestration. -- can we go in 2014 if we cannot curb the tide of sequestration. >> they could drop lower. i fear is that people are going to start acting out. the majority of the country is so upset, it hasn't been dealt with for so long -- >> are you talking about social unrest? >> i believe we are on the verge of our version of the arab spring. >> have seen all the strikes over the minimum wage. >> people have said -- we have done this for 25 years. >> real median household income is back to 1998. >> that is right. a lot of that is because of this very deep recession. it made it that much worse. i think the challenges, look at what has happened over the past few decades. you had amounts of consumer spending. jobs economy was fueled and by debt.

people do not have the ability to spend. they spent on borrowed money. thank you so much. michelle meyer, getting back to bank of america merrill lynch for the 8:30 job seaport. it was an odious apartheid state. according to john campbell, a senior fellow at the council of , nelsonrelations mandela is a nonracial democracy according to the rule of law pt is the president of the consulates of foreign relations. ambassador, this moment has been a long time coming. what is the view forward? >> south africa was the beneficiary for two grateful things. first was the peaceful transition of apartheid to a new political system and his own willingness to live -- and to give up political power after

one term as president. the problem has been since then, the challenge is institutionalizing them up or see, making it a viable economy. -- institutionalizing democracy, making it a viable economy. >> what could be a positive u.s. policy e we have paid lip service but is very tangible projection of washington to benefit south africa and the rest of the sub-saharan continent? >> absolutely. africa will grow south of the , five percent. i think the real possibility is with the growing trade to the u.s. market. we are beginning to see private investment, private equity, and other forms of investment going into south of the sahara. this is potentially one of the positive stories on the world , with the world economy.

it is not get as much attention as they should. hei want to bring in -- shared the nobel peace prize with nelson mandela. he wrote, "i first met nelson mandela in 1989. we did not assess any substantive issues -- i love this because he gets past the mythologizing of nelson mandela. is there anyone that can sit down and do business in south africa now? >> not quite the same as those two. the nobel prize does not always get it right when they give out the peace prize. they gave it -- they got it right with nelson mandela. south africa was extraordinarily lucky they had two people willing to compromise to make a peaceful political transition. right now you do not have

leadership of that extraordinary quality. it is not as good as it needs to be. there are still 25% unemployment in south africa, and enormous economic inequality, 1/10 of the population has hiv, so enormous challenges and the question is whether the political leadership is up to it. the jury is out. mandela's successors are not at his level. >> your council on foreign relations has provided real leadership in letting us know what africa is doing. if you had one message to the american people about the future of the continent, what would it be? >> two things, one it has the potential to be one of the economic drivers on the positive side of the next decade. -- other is the democratic the demographic challenges. africa is going to be one of the parts of the world with the greatest demographic increase. the future of africa will have a

norm is consequences for the world's economy but more broadly as well. we just have to see how it plays out. part of it.e a it certainly has not gotten the attention it deserves. america needs to learn more about it, go over there more, invest more. his is one of the real pockets of possibility. >> thank you so much. richard haas us with the council of foreign relations. book, "foreign policy begins at home." >> we have much more on jobs. we are going to be discussing companies, including apple versus samsung.

>> good morning. it is jobs day. i am tom keene. with me is scarlet fu and alix steel. i am really looking at wages this morning. i want to see the wage dynamic. scarlet fu is looking maybe to build up the wage in bitcoins. >> a lot of people are wondering if it is in a bubble. alan greenspan believes so. to give mywant opinion. >> of course not.

outlawed trading in the currency. bank of america initiated coverage with a target of $1300. matt dowd, political analyst, is with fast as guest host for the hour can you say this is something that washington needs to get up to speed on really quickly. >> i do not have concerns because i think -- that coin is the canary in the coal mine for what we will face in the next 10 years, cyber currency. there are lots of questions about whether or not there are algorithms and it can last over the course of the long haul, cyber currency is here to stay and somebody is going to be the next bitcoin. our monetary policy is going to be in shambles if that happens. >> what does the long be -- the lobby look like a couple of years down the road? tok's the thing a are going

have to answer -- they have operated mostly in the dark and has been -- and have been successful in the dark. they come and go and what people do and how they trade and buy and sell this online, or will they come out in the open? at some point the critical mass is going to reach a point in cyber come -- in cyber currency. that's no going back at point. >> china moved quickly to ban it from financial transactions. we are not china but there is a concern that it has become a means of transferring funds. would the u.s. move in that direction? >> the problem you ultimately have is, like vegas, the government all depends on getting their share of the cake. they get their share of the cake in any transaction. whether it is a payroll, a purchase, an economic transaction -- if cyber currency built in momentum how does the government get its share of the take to support its government?

that is ultimately a huge heart of the problem. -- huge part of the problem. 10 years from now government is going to have to get in bed. >> we are going to see bitcoin lobbies. dowd, bloomberg political analyst, certainly a topic that will be explored further. coming up, we are going to talk about the marketing campaign behind inker mantoux. we will also discuss apple versus samsung.

>> good morning. bloomberg surveillance, i am ron burgundy. matt dowd is with us. give us some top headlines. >> in south africa, mourners have gathered outside of man's -- outside of nelson mandela's home. south african jacob zuma -- south african president jacob zuma broke the news.

deputies prime minister shinzo abe salve is calling for meeting with -- calling for a summit with chinese president gigi paying -- xi jingping. be athink there needs to meeting between the heads of state. i always keep my door open for a dialogue. samee china will adopt the approach. >> and companies are spending a bit more for holiday parties this year. party budgets have grown slightly over last year, that is according to a research -- to research from millerpulse.com. those are your top -- >> shortening the length of surveillance parties? corks i remember not even having christmas parties for years. in full force.k

>> a midtown manhattan, it is a wonderful field. -- i wonderful feel. >> it is so ron burgundy. here is a shameless plug for you, anchorman two comes out september 18. you probably artie knows that -- already know that. a local north dakota newscast as his character. if they have 32nd ads over a dog. a college renamed its communications school for a day. there is a burgundy memoir that barely scratches the surface. i want to read it this weekend. the question is, is this a total new age and marketing? agency,e ceo of digital did anchorman 2 completely

destroy traditional movie marketing for every e -- forever? >> there has been an enormous amount of impact. his is a team effort, obviously. we are one of many organizations working on this. it all starts with a really great product. this film is really funny, paramount has done a great job. >> is that mean will ferrell drives the bus when it comes to this kind of promotion? plex i would say the ideation comes from their product >> -- >> i would say the ideation comes from their product. this is the first film -- when it came out, facebook did not even exist. now it is almost a byproduct. most offascinated by -- us cannot stand doing the stuff. he is front and center.

does he have an equity interest in the movie? -- >> ii think his think his motivation is multifaceted. probably oneion is of the greatest web properties out there. the production company is unbelievable. is going to make a lot of money from his unique and original efforts. >> i think they will make a lot of money. >> he is a natural fit for this because of his background in improv. massage the next wave of movie marketing paid could other talents step up and do the same thing? clock's that is one of the greatest lessons here, -- >> that is one of the greatest lessons here. traditionally actors will the film and when the film was done the actor was no longer -- they moved onto the next project. this is proof that the social

currency that that particular individual has and the zealots that are out there that are true friends -- true fans when they are not on screen -- they can continue their influence. particularit take a individual? some would not be able to handle and deal with it. it takes a particular interesting character in order to be able to do this. >> without question. justin timberlake is a perfect example of someone who is able to reinvent himself because he was able -- >> but he is a terrible actor. >> he has gotten better. >> he's riffing on himself. >> that is the important thing. there is a not that -- and authenticity that does not .eally come through once the audience knows you're being authentic, there is an enormous amount of zealots that

promote. >> we talked everyday about apple, facebook, samsung. applying this social media, who is the upper came right now? -- who is the king right now? >> it is still evil thing. first ofur choice -- all to give us the ability to ,everage platforms out there the work we are doing is pretty impressive. to become part of the narrative of this -- not only prior to the film coming out but after the film is coming out, the mean generator, there are millions of means that help facilitate it. digitize throw another $100 million on top of what it has done? anotheru guys throw

$100 million on top of what it will do? crooks i would say budget engagement. >> i want to see it anyway. thank you so much. great to have you. >> investors love apple. it is hot again.

>> let's get you some company news now. starting with microsoft, it teams up with the fbi. the company's digital crime unit fightingg that is

software that has affected 200 million computers. causing advertisers $3 million per month. the sec has some questions for jcpenney. of the stock offering came just after penny said it was pleased with its turnaround. the move angered investors and diluted shares by almost 40%. penny says it is cooperating with the sec. and los angeles is going after citigroup and wells fargo. the city is suing the two banks, accusing them of discriminatory mortgage lending. it led to a high number of foreclosures. the city wants damages for reduce property taxes and the cost of maintaining foreclosed homes. commodities have been much in the pictures. look at gold, all over the place. mining companies are reacting to the challenges of slashing costs

and delaying capital investment. alix steel is here looking at commodities. she knows how to pronounce vale. >> they are the biggest i am producer in the world. that is used to make steel, which is made and everything. what other companies are doing, trimming investments for a third year, selling assets including $10 million of it cold unit. doingo said they were that, trying to trim the fat down. >> everybody else does it. brazil?unique to >> they are based in brazil so the question happens to what is going to happen to brazil's credit-rating?

has indit default market trading as if they are linked. swap prices have been rising as a threat of a possible downgrade in brazil. >> you are good at this, link this to the blood we have seen in gold this week. there is a commodities silver cycle, there is a debate along broad come -- along broad movement on commodity pr ices. on this jobs friday, gold in a tank, what does it mean? plucks it means gold is going to struggle for the next year. what do they say? >> this week big downgraded to 1200. goes underernestine $100,000. how many people are with mr. bernstein on that? go sosome point goldman low that the miners cannot afford to keep running, which will cut production am a hence a

super cycle. how long do prices have to stay below in order to get their? if physical demand kicks in -- china likes gold. get back to selling assets, all of these miners are desperate to get rid of their assets. who is buying >> -- buying? that areare ones interested in coal specifically because of china, and that is trickling down to end user demand. >> what does the cell site say about the trap, they are in distress. >> a lot of them wind up saying that. they are so cheap you cannot help but own them. that has not played out this year. individual stocks, maybe. all of the shake up with the new chairman, it is still in flux. --can i ask a dumb question

they have iron ore, how do they get it to china? do they ship it on boats? why -- i amming assuming flying would be hard. they're infrastructure -- you may being -- you may bring the iron out of the ground but you had to get support to ship it to china >> -- to china. >> the only thing that gets her going is ron burgundy. ron burgundy doing an iron report would be mad friday dream. >> we will do that next week. let's get them to work on that one. >> that would be great. >> thank you so much, really good. >> it is job stay. we need to look ahead at what the markets are doing. the consensus of long -- among economists surveys is 185,000 jobs for the month of november.

they are looking for the unemployed rates to fall to seven point two percent and ahead of that number, the 10 year yield is down a little bit. it has come up a lot the past week with the expected gdp at 2.8 -- 10 year yield six percent. >> bloomberg surveillance, bloomberg television and radio, bill gross will join me in the a 30 hour on bloomberg radio. look for betty liu's coverage on bloomberg television at eight: 30. futures advance up seven. they were up five earlier. moments agoentioned the idea of yields up, it is a better feel to the american economy. matthew dowd, is our bloomberg political analyst. as we look to nelson mandela, maxine waters of congress will join us in it that. >> we are looking at the premarket trade and apple is on top. it is down a little bit right now. we know it has been a year of transition for the company. the stock dropped below 400 and

people thought the world was ending. called and other investors coming in, calling for more cash distribution. the tide may have turned in the past few weeks. the stock is back to 567. you have that china mobile deal that everyone has been waiting for. >> the chart is critical. apple is back on trend. tim cook's christmas wish could come true. really talking each and every day about apple, what is your number one message on apple? plucks apple is a loyalty story. been a loyalty story but nobody knew during the iphone era. iphones came after a whole lot of other brands out there. or member the razor and the blackberry. these things tended to go up and

down very rapidly. there was no persistence to that market. i have worked with nokia for the past few years. question was his iphone really a trend? plucks do you see android users converting to iphone? what is the dynamic there? >> the conversion rate overturned between iphone and android. it is very small. it is mostly iphone people upgrading to the android. first phones were basic phones, they were feature phones that had android running on them. >> what we have learned over thanksgiving weekend is that ipad users make their purchases. people who use their phone tend to browse and make a purchase on the ipad. the apps and the software people build for the ios is fungible. you can use it on ipad and iphone. if they're more opportunity for developers to focus on the ipad?

>> the shopping data is driven by rousing experience. we certainly see a lot of consumption. the average user he owns more apps and pays more for them. is about the shopping data is that people are turning to that device to actually transact. that is a browsing experience. >> the bull market case is based on the aspiration internationally to own an apple product. see?you >> obviously the iphone is very strong. 70% of the smart phone sales are the iphone. china has been very volatile. that we an expectation are going to see a nice rise into the next year with that. in india the iphone is still very slow.

indonesia has as much population >> whatnited states and if they lower the price in indonesia? >> that is the whole point. it is not a question of whether we are going to be there but when we are going to get to the right strategy and infrastructure. many of these places do not have it. >> what about spending? karo icon called for apple to deploy some of its cash. capital expenditures have not setting -- have not been sending the world on fire. >> it is a leading indicator of sales so it did not pick up as much as we thought. forecasting are 20% increase to 10 billion next year, at least 20%. >> the latest on apple versus samsung, certainly apple shares

are moving in the premarket right now. >> remember the gloom? >> things have turned. the day is ebay day. we are going to be speaking with the john donahoe, later on.

>> mohamed el-erian on nelson mandela. that is at 9:00 this morning. tomy will also speak with perez, the labor secretary. that is today. with tomcarlet fu here keene and alix steel. our guest host for the hour, matthew dowd, political analyst. of ae is the founder source on apple.

he liked our franchise so much he bought his own. i have a quick chart on the significance of china mobile. when you look at china mobile relative to the other operator, even in china we are looking at over 600 million new subscribers in available. >> he is dealing your act. >> and he is doing it on a tablet with touchscreen capabilities. this is unacceptable. unimaginative 36 months ago. make are using them to presentations and to tell stories. the enterprise feature for , one analyst said it wasn't even in the price right now. >> absolutely. they're selling evil is quantities of ipads. it is not just -- selling igor

was quantities of ipads. -- selling enormous quantities of ipads. in theshow china mobile vast number of subscribers it has and the rivals, which look puny in comparison. these are not small companies. >> not at all. the smallest one is china telecom with 100 million. that is about as big as at&t. we are dealing with six to seven operator inith one this deal. >> why don't they cut the price for those two specific countries to just grab market share react :00's i think the tim cook answer would be we have the older products available at a lower price. they introduced the five c at a lower price. the 5c has not done as well as people think ms product would. the early market, which is the

first few months after launch, is going to go for the high-end product. gohink the 5c story will into next year. not so much about profit as brand. apple needs to make sure there he are the premium brand. -- they are the premium brand. crooks coming up, maxine waters of california on nelson mandela.

>> this is bloomberg surveillance. let's get you some company news from the files of bloomberg west. optimism for bitcoin, analysts at merrill lynch say the currency has clear potential for growth and could become a significant tool for e-commerce transactions. acorn should have a maximum market value of $1300. that corner was trading at just under 1000 yesterday. modified plans to launch a free mobile service for music, it will be available in the u.s. and other countries. spotify hopes the service will convert more users into paying subscribers. at&t is introducing a of service plans that excludes

device costs. the old service plan charged $70 regardless of whether the customer had their own device were not. that is from the files of bloomberg west. >> it is decidedly distant from a garment factory in los angeles to the halls of congress. maxine waters in california has traveled that path. 19 66. a head start in she was a vocal supporter of onifornia assembly bill 134 divestment of south africa investments. the rest of america would catch up to maxine waters in california. the congresswoman joins us today on the memory of nelson mandela. here wonderful to have you away from the cliches and all of the different matter member and differentl of the remembrances we are hearing, what was it like to meet nelson

mandela? awe of this awesome human being that i have worked for, that i have read so much -- thathat has educated i have educated others about, that i have gone to jail for, that i have rallied on college campuses for. angeles,anded in los when we created the big welcome event for him, there he was and i was just dumb struck. i was an off him. -- i was in late august him. -- in awe of him. >> d emancipation proclamation took a long time to come to fruition. we moved from the civil war into the 1960s, that was our experience. how similar or different was a black experience in south africa versus the united states? >> apartheid in south africa was

the worst kind of approach and -- kind of oppression you could imagine. not only did you have people who to the areas far outside of the main city of south africa, who lived in shanties -- one water fountains serve thousands -- one water fountains serve thousands. if you fell into the black or brown category, you simply could not be educated, you could have a decent job, you work in the mines for pennies, it was horrible and awful. worse than what we experience going through the kind of discrimination here in this country. >> when you look at united , it is soitics

fractious now. what can we learn from nelson mandela? >> oppressed people endure oppression -- will not endure oppression forever. you are going to have confrontation eventually. you cannot oppress people and expect them not to rise up. i think we need to understand that and we need to understand that we can live together. for those people that do not believe in it, that is where the problem comes in, that is where the trouble is. the lesson for all of us with south africa is that no matter -- they did not have weapons. mandela was. nelson in the leadership of that and he

was determined there would be justice. he gave his life for it. >> nelson mandela was a negotiator. he was a politician, he reached across the aisle to negotiate what some people could call the attribute. call the enemy. >> you have to understand that nelson mandela was a lawyer. he had persevered and gotten educated. he was able to understand thoroughly how to confront the enemy. jail for that. he had a long time to think about what life could be. a lot when his to his thinking about others in what he could do. had not been able to leave south africa -- lead south

africa, south africa would not be where it is today. yes he did. they paid a big price for that. >> thank you so much, congresswoman waters from washington this morning. we leave for our agenda this morning on nelson mandela. let's take this forward. years, 1940. the view forward for south africa will be far more challenging. >> it is an amazing story. at 72.n -- it happened that is what his achievements happened them in the last 20

years of his life. it is a lesson for all of us. he decided there is a lot of accomplishments (. >> he served one term and left the political stage when he was on top. >> nelson mandela and the pope have to mend his humility. they are very powerful man. >> a gandhi biographer in india wrote eight tweak critical of this. he said mandela should have served two terms where others should only serve one term. didn't sub the public good? -- youink nelson mandela have to be authentic to who you are. nelson mandela, out of -- after hisot out of prison,

authenticity was what his power was. >> it was the same debate for george washington. should he serve one term or go further? >> he was front and center for us all day today. on the markets side, it is job stay. -- jobs day. the question is is it going to be enough, our expectations too high? . the pricing and. the pricing in. >> i think 70% of the country says it doesn't field like it -- it doesn't feel like it. we look atease and other pieces of data that reflect where the majority of the country is. broad jobeyond the numbers. it we gotis lance and

the breaking news that sears plans to send off the mail-order business by distributing the company to areholders. we saw shares fall yesterday. they have been tanking here because eddie lampert's investment, his hedge fund, has been reducing stake because investors were redeeming some of their holdings. avoidre hoping they can -- >> is still crazy. know you do not order from its necessarily. when your kids were in school, school uniforms, people go there all the time. >> this is fabulous. thank you so much for an extended bloomberg surveillance today. thek you so much for perspective on ron burgundy. >> you are so welcome. >> bloomberg surveillance

continues on radio. tom will have the jobs numbers. in the loop with betty liu, betty will be breaking down the jobs numbers at 8:30 a.m. area

>> jobs in focus. as wall street readies for a strong report, we hunt for the economy's weak link with pimco's

mohamed el-erian and labor secretary tom perez. how does a retail giant stay one step ahead? we go inside ebay. tourism in mexico is booming, but so is the drug violence. how the country is tackling its pr nightmare. >> from bloomberg world headquarters in new york, this is "in the loop" with betty liu. >> good morning. 6.is friday, december we are live from bloomberg world headquarters. you are "in the loop." i am betty liu. we have the top stories covered. the november jobs report is 30 minutes away. we have all angles covered. is looking at how investors are positioning themselves ahead of the report. ende hyman has lands' spearing up -- spinning off from sears. megan